Regional childcare developments continue to attract the attention of childcare operators and investors as demand for these assets continues to grow.
RWC Western Sydney childcare asset expert Jai Sethi said childcare developments outside of the major cities were in hot demand.
“Right now more regional areas are catching a lot of attention because people are still migrating there post-covid. This means there's a big need for childcare services,” Mr Sethi said.
“Many interested in buying are individuals who already run childcare businesses. They're willing to pay extra for sites that have been approved for development so they can grow their services in these growing areas without any approval delays.”
Mr Sethi recently sold a 66 place childcare development (pictured above) at 127-129 Kanahooka Road, Kanahooka, in the Wollongong region for $2.5 million.
The property was snapped up by Thrive Early Learning Centre who operate 13 childcare sites across New South Wales.
“The development approved site sold for $37,879 per place. It has been sold on a six week settlement which is a strong result in the current market,” Mr Sethi said.
Mr Sethi also has another regional childcare development listed in the Central Coast region.
The property at 166 Warnervale Road, Hamlyn Terrace (pictured above), is development approved for a 120-place childcare facility.
“Positioned right in front of the local school, it's part of a lively and fast-growing community on the Central Coast,” Mr Sethi said.
“The area is witnessing numerous new housing developments and better social facilities, making it a promising prospect for childcare expansion.
“Various types of potential buyers are expressing interest, ranging from owner operators to local developers and builders in the vicinity.”
